To Wade Caldwell and others familiar with the Reeves County oil and gas matters.
I’m a lawyer in Atlanta (GA) and a rank newbie here. My brothers and I have recently inherited a few oil and gas interests in west Texas, including Reeves County. Over the past couple of months we’ve been receiving inquiries from people wanting to buy our interests in Block C-1. I haven’t yet been able to get a clear explanation for this recent interest when these interests have been sitting there doing nothing (as far as our family knows) since my grandfather acquired them in the 1930’s. At this point we’re just doing some due diligence. One of my brothers found this forum and it seems to be a very good resource. I am hoping that you (and/or other forum members) can provide some leads that might help us understand what’s happening. Looks like we have a steep learning curve to climb!
Carl Like your family we also inherited minerals in reeves county as well as others. I would not even think about selling them. They are costing very little to hold on to. There is not one person on this site that I have encountered that would try to exploit you and your family. Just ask any thing you like and someone will answer. Welcome. To the site.
Laura, That deed is telling you what they think you own on the minerals. Basically, 1/64th of the gross production. However, there are cases where people reserved minerals but the grantor owned less minerals than he thought, so you would need to look at the full chain of title to make sure you own 1/64th. There is an interesting issue whether you own more if the royalty ends up being higher than 1/8th on the lease. Too complex to get into in a blog post.
Laura it looks like they are offering a one eighth lease to me look at it this way for every 64 barrels of oil they produce you will receive one barrel and many of the posts here say they are being offered one fourth lease as opposed to the one eighth lease.
Thank you for the valuable information! The information that I am getting the above off of is from my Mineral Deed itself. All of my other interests spell out how many acres in the Deed except for this one. So before I lease it to anyone, which no one has come forward on this particular property, I wanted to be sure what this document was telling me that I actually owned.
I am not sure how many mineral acres I owned in the following property and want to make sure that I know before leasing out. The mineral deed says:
“An undivided one-eighth of the one-eighth (1/8 of 1/8) royalty (equivalant to one-sixty fourth (1/64) of the gross production) on oil, gas and minerals produced and saved from the Southwest one-fourth (SW/4) of Section Forty-Five (45), Block Four (4), H&GN Railroad Company Survey, Reeves County, Texas, such interest being one-half (1/2) of the participating royalty…”
Laura if you have no one else participating in your acreage they are leasing one fourth of the section which is 160 acres 160 divided by eight would amount to 20 acres.
After a lapse, I have some inquiries about leasing mineral in Sec 8, Blk 51, T&P RR, Twn 7, Abstract 5873. Anyone have any information what the current lease bonus rate and royalties are? This time around, I would like to get a fair, competitive price and have some confidence that a well may actually be drilled.
Question: My family owns royalty interests in Block C-1 of Reeves county, where apparently there are alleged “over-conveyance” issues (i.e., if you add up all the mineral rights + all the royalty interests the sum exceed 100%). It is my understanding that operator Patriot Resources, Inc. has filed an Interpleader action in order to ask the court to sort out the various interests and claims. Is anyone here familiar with this litigation? We’re looking for other royalty interest owners who may be similarly situated to us, but any info or leads would be appreciated.
Carl We have minerals in sec 17 C-1 PSL have not heard anything about t his. I will share any information I get. It is hard to find things out when you are not there.
Thanks, we have now obtained a copy of the interpleader petition filed by Patriot Resources, along with a list of the defendants. Our [deceased] grandmother is on it.
Received another offer yesterday to buy our minerals.
Mayflower Exploration
$7,000 per nma.
Blk. 13 Sect. 219 Reeves Co.
It’s been mentioned on this board before. Unless you’re in financial need in the short term, do not sell your mineral rights to these buyers. Their business is to know things the average land/mineral owner does not.
Starting in November 2013, we’ve received four offers from Mayflower Exploration. The first was $4,250 and yesterday’s offer is now $7,000 per net mineral acre. From articles I’ve read and by watching this board, oil companies are just now beginning to get a clear picture of Reeves county oil/gas potential and how to target it. Correct me if I’m wrong but I believe Clayton Williams recently reported up to 400 million barrels of oil per section of land in the South/central area of Reeves. I also understand with current drilling technology, somewhere between 5%~8% of that figure is recoverable. With technology constantly improving, the future is bright for Permian Basin mineral owners. Don’t let temptation guide your decision when approached by these mineral buyers. What they offer is but a fraction of what could be modest to significant long term financial support for Family members in the future. Best wishes for all.
Fred - Thanks for sharing the information about Mayflower Exploration. Curious about the offer. Do you already have a well or lease on the property? Also, how far are you from T7S Block 50 Section 38?
D Cole - We are currently under lease until Summer next year. No well or any activity as of yet. Our land is located approx. 1-2 miles South of Verhalen, Tx. on highway 17 South or about 23 miles South of Pecos. Hard for me to estimate distance from your property.
We are right below you inside section 222 blk 13. We had Mayflower offer us $3500/nma , but when we said we might be interested , they followed up with a low counter offer claiming we were part of the school tax. They said because of the “school tax” they could only offer $2500. We didn’t sell. You are correct in your post below, and I believe its worth way more than $7000/nma. Like someone else said on this post, “many of these companies are flippers”. So, we’re holding on to ours, now its a wait and see…